Question

In: Statistics and Probability

Please show steps using LINDO! Spencer Enterprises is attempting to choose among a series of new...

Please show steps using LINDO!

Spencer Enterprises is attempting to choose among a series of new investment alternatives. The potential investment alternatives, the net present value of the future stream of returns, the capital requirements, and the available capital funds over the next three years are summarized as follows:

Capital Requirements ($)

Alternative

Net Present Value ($)

Year 1

Year 2

Year 3

Limited warehouse expansion

4,000

3,000

1,000

4,000

Extensive warehouse expansion

6,000

2,500

3,500

3,500

Test market new product

10,500

6,000

4,000

5,000

Advertising campaign

4,000

2,000

1,500

1,800

Basic research

8,000

5,000

1,000

4,000

Purchase new equipment

3,000

1,000

500

900

Capital funds available

10,500

7,000

8,750

a. Develop and solve an integer programming model for maximizing the net present value.

b. Assume that only one of the warehouse expansion projects can be implemented. Modify your model from part a.

c. Suppose that if test marketing of the new product is carried out, the advertising campaign also must be conducted. Modify your formulation from part b to reflect this new situation.

Solutions

Expert Solution

ANSWER:

Given that,

NPV=17500


Related Solutions

Q2: Problem 8: Capital Budgeting – 0,1 variable Spencer Enterprises must choose among a series of...
Q2: Problem 8: Capital Budgeting – 0,1 variable Spencer Enterprises must choose among a series of new investment alternatives. The potential investment alternatives, the net present value of the future stream of returns, the capital requirements, and the available capital funds over the next three years are summarized as follows: Alternative Net Present Value ($) Capital Requirements ($) Year 1 Year 2 Year 3 Limited warehouse expansion 4,000 3,000 1,000 4,000 Extensive warehouse expansion 6,000 2,500 3,500 3,500 Test market...
Please show steps in the calculation. Please make sure you include checking conditions for using the...
Please show steps in the calculation. Please make sure you include checking conditions for using the CLT. Only Answer Question 3 and 4 The Human Resources (HR) Department of a certain college has asked all employees who were employed in 2018 to fill out a survey in December 2018. Three items on the survey were: “Your dental expense in 2018”, “Are you in a family with at least three other family members?”, and “Your medical expenses in 2018”. The manager...
Please show steps in the calculation. Please make sure you include checking conditions for using the...
Please show steps in the calculation. Please make sure you include checking conditions for using the CLT. The Human Resources (HR) Department of a certain college has asked all employees who were employed in 2018 to fill out a survey in December 2018. Three items on the survey were: “Your dental expense in 2018”, “Are you in a family with at least three other family members?”, and “Your medical expenses in 2018”. The manager of HR has randomly selected a...
Please show all steps using data set below and excel. By using a bivariate regression trend...
Please show all steps using data set below and excel. By using a bivariate regression trend line model, forecast total houses sold for the next five years. Prepare a time series plot of these data (years are on the x axis, THS is on the y axis) that shows both actual and forecast THS for the next five years. Total Houses Sold Year Northeast 1996         74.00 1997         78.00 1998         81.00 1999         76.00 2000         71.00 2001...
PLEASE ANSWER USING EXCEL. please show formulas used in excel. THANK YOU :) Parry Enterprises sells...
PLEASE ANSWER USING EXCEL. please show formulas used in excel. THANK YOU :) Parry Enterprises sells copy paper by the case to office supply stores. Each case of paper costs Parry $15. The operating costs are $30,000 per period. Each period, Parry sells approximately 15,000 cases of copy paper at $35 per case. Texas Office Emporium is requesting an order of 4,000 cases of copy paper in the next period at a price of $25 per case. Since Parry has...
PLEASE ANSWER USING EXCEL. please show formulas used in excel. THANK YOU :) Parry Enterprises sells...
PLEASE ANSWER USING EXCEL. please show formulas used in excel. THANK YOU :) Parry Enterprises sells copy paper by the case to office supply stores. Each case of paper costs Parry $15. The operating costs are $30,000 per period. Each period, Parry sells approximately 15,000 cases of copy paper at $35 per case. Texas Office Emporium is requesting an order of 4,000 cases of copy paper in the next period at a price of $25 per case. Since Parry has...
Please Use matlab and show command window. Please go through all steps Using a Dialog button...
Please Use matlab and show command window. Please go through all steps Using a Dialog button with 3 buttons have the user chose one of the 3 anonymous functions below to be used in the later selected three Programmed functions (1) Integral by Trapezoidal Method,(2) Integral by Simpson Method, or (3) Root by BiSection Method.: a. f(x) = 2*x^5 -3*x^2 – 5 b. f(x) = x^2 – 5 c. f(x) = x^(1/2) 2. Using an input statement ask the user...
***PLEASE SOLVE EITHER USING A BA II PLUS CALCULATOR OR SHOW STEPS*** The answer is included...
***PLEASE SOLVE EITHER USING A BA II PLUS CALCULATOR OR SHOW STEPS*** The answer is included but I want to learn the steps. Do not use Excel Ehrmann Data Systems is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's MIRR can be less than the WACC (and even negative), in which case it will be rejected. 13.74%               WACC: 8.75% Year                                  0                   1                   2                   3      Cash flows                ...
Please solve using EXCEL SOLVER and show steps 1 – A company requires during the next...
Please solve using EXCEL SOLVER and show steps 1 – A company requires during the next four months, respectively, 50, 65, 100, and 70 units of a commodity (no backlogging is allowed). Production costs are $5, $8, $4, and $7 per unit during these months. The storage cost from one month to the next is $2 per unit (assessed on ending inventory). It is estimated that each unit on hand at the end of month 4 could be sold for...
Please answer both questions. Show work Sammy's is the hot new lunch spot among the hipsters,...
Please answer both questions. Show work Sammy's is the hot new lunch spot among the hipsters, who flock there at noon for their artisanal peanut butter and jelly sandwiches, which sell for $12.95. The sandwiches are made from two slices of their own artisanal bread, which they bake continuously throughout the day at a rate of seven loaves an hour (each loaf contains twenty slices). The actual cost of a loaf of bread is $1 and the cost to hold...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT